This policy explains how Rapidoo Loans determines and applies interest rates and other charges on its short-tenure personal loans. It is framed in accordance with the Reserve Bank of India’s guidelines on transparency in interest rates and fair lending.
Objective
To ensure that every applicant knows the exact cost of borrowing before accepting an offer, that rates are arrived at on a reasonable and consistent basis, and that no charge is applied without prior disclosure and customer consent.
How rates are determined
1
Cost of funds
The Company’s own cost of borrowing and capital forms the base component of the rate offered.
2
Credit risk
The applicant’s credit history, bureau score, repayment record and income stability influence the risk premium applied.
3
Loan amount and tenure
Ticket size and repayment period affect servicing cost and are factored into the rate.
4
Operating cost
Verification, processing, technology and collection costs are reflected in the rate and in the processing fee.
Disclosure
- The applicable interest rate, processing fee, penal charge and any other cost are stated in the Key Fact Statement, sanction communication and loan agreement.
- Interest is charged on the outstanding principal for the actual period of the loan, on the basis stated in the agreement.
- The annualised rate is disclosed so that the borrower can compare the total cost of the loan.
- No charge is recovered from a borrower unless it has been disclosed in the loan documents.
Penal charges: A penal charge applies only where repayment is delayed beyond the due date. It is levied at the rate stated in the loan agreement, is not capitalised into the principal, and is not applied as an additional component of interest.
Prepayment and foreclosure
Borrowers may prepay or foreclose a loan in accordance with the terms of their agreement. Any applicable foreclosure charge is disclosed upfront in the loan documents.
Review
The Board reviews the rate structure periodically to keep it aligned with RBI’s fair lending principles, the Company’s cost of funds and prevailing market conditions. Revised rates apply to loans sanctioned after the date of revision and do not alter the contracted rate of an existing loan except as permitted by the agreement.
This policy is issued by Trivani Vinimay Private Limited (RBI Reg. No. B.05.05894), which operates the Rapidoo Loans platform. It is reviewed by the Board of Directors periodically and may be updated to reflect changes in regulation or business practice. For clarification, write to
info@rapidooloans.com or call
+91 9599006664.